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Clergy

Sessions and Clergy Financial Health

By July 15, 2009No Comments

One of the realities for most Presbyterian clergy and I suspect most clergy is that their salary is a matter of public knowledge. Any change in their compensation must be voted on by the congregation and is subject to all sorts of debate and interpretation. There are certain myths that also seem to float around most congregations that considerably inflate members perceptions of what the pastor’s income amounts to.

For example, they have heard that a certain amount of the pastor’s salary is tax free. That is true as long as it is a fair rental value but many people assume that that amounts to a lot more than it does. They also assume that many clergy receive honorariums that amount to tax free dollars as well. While it depends on the clergy’s honesty, just as it does on tips for a waitress, it is not true that what they receive is tax free. Most members do not think about the amount that a pastor pledges back to the church or if they do think about it, they assume it is about the same percentage as everyone else. There is also the unspoken myth that a truly faithful pastor shouldn’t make a lot of money.

All of this makes the pastor defensive about their income even while they are struggling to meet their bills. It also makes them feel greedy if they push for a higher raise. A session could help by being clearer about some of the aspects of a clergy salary. For example, study leave allowance is not additional salary but reimbursement for expected professional expenses. Honorariums, while taxable, rarely amount to very much over a year and many clergy use them in their ministry rather than keep them for themselves. While a session should not make public a pastor’s church pledge, they could get some figures from the national church as to the average percentage that pastors pledge and share that with the congregation. It might even cause some members to think about their own pledge.

Finally, it might be a good idea for someone to go to bankrate.com and get some cost of living statistics together with some average expenses in their area and try to form up an average budget to see just how the salary offered could be compared to normal expenses of living. To have a discussion about that in a session meeting might bring some reality to the financial decisions with respect to salaries. The Board of Pensions also has some helpful information for such a discussion. Go to www.pensions.org .

Discussions about money are often avoided but a little honest discussion might help.

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